After it launches select Options to configure the display and controls

Remember we originally set to virtualize the desktop, so you will see a window at 1024x768 with a blue background.
I was able to reset the game graphics resolution to whatever I wanted and the virtual desktop would resize accordingly.

Do some tests by loading a game and playing. Once you are satisfied with the performance and graphics, go back to PlayOnLinux Wine configuration and uncheck the "emulate a virtual desktop"

Click Ok and restart Windows again.
If you see any strange graphical artifacts while playing, there may not be a way to fix it.
You can always try a different version of Wine

Note: If you have further problems with the resolution and desktop, just keep "virtual desktop" enabled. I have found in many games that they run fine in a "virtual desktop" and still look full screen. Just match the "virtual desktop" resolution to your desktop resolution or vice-versa